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Renewal of Various RTA Insurance Coverages 2021-2022
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DESCRIPTION: Renewal of various insurance coverages for policy period 2021-2022. |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other Authorization |
RECOMMENDATION:
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Authorize the Chief Executive Officer to proceed with renewal of specified insurance coverages for the policy period 6/1/21-6/1/22.
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ISSUE/BACKGROUND:
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RTA annually renews a group of various insurance coverages on June 1st. These include Overhead Catenary Systems [“OCS”], Property/Excess Property, Public Officials/Employee Liability, Crime, and Flood. The policies are marketed and placed by the RTA insurance broker of record, The Kennedy Financial Group of Louisiana, Inc., and provide optimal coverage at the most competitive cost.
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DISCUSSION:
It is necessary that RTA proceed with renewal of these insurance coverages through the RTA broker of record, The Kennedy Financial Group of Louisiana, Inc., on a timely basis:
Overhead Catenary Coverage [“OCS”]: Total Insured Value of $29,060,797, covering all catenary lines in RTA streetcar system, including wires and poles. Total limits: $5M.
Property/Excess Property: Total Insured Value of $111,146,093, extending to thirteen (13) locations, inclusive of buildings and contents. Total limits: $25M.
Public Entity - Errors and Omissions: $5M per wrongful act, covering public officials/employees for errors or omissions in duty.
Crime: $1M/$500,000 limits, covering forgery and alteration, on-premises/off-premises theft and burglary, computer fraud, funds transfer fraud, and related financial crime.
Flood: Thirteen (13) locations. Limits of $500,000 per building, with exception of chassis wash and guard shack at ENO.
Details of the respective coverages can be found in the Resolution and associated attachments.
For comparative purposes, the total cost for these respective coverages for policy period 2020-2021 was $1,202,450.32. With changes in market conditions, the total cost for the same coverages for policy period 2021-2022 is $1,290,548.05, yielding an increase of $88,097.73 from last year (approximately 7.5%).
FINANCIAL IMPACT:
$1,290,548.05
Funds for these contracts are available from the RTA Operational budget. (See attachments for details.)
NEXT STEPS:
Proceed with renewal of insurance coverages as indicated above.
ATTACHMENTS:
• Resolution for Contract Award of Various Insurance Coverages
• Award Routing Sheet
• RTA Comparison Spreadsheet: 6/1/21-2022 Insurance: Expiring versus Renewal
• Marketing Summary Report (property)
• RTA Wright National Flood Renewal 2021-2022
Prepared By: Marc Popkin, Risk Analyst
Title: Administration and Finance
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
Reviewed By: Mark Major, Deputy CEO
Title: Administration and Finance
5/20/2021
Alex Wiggins Date
Chief Executive Officer